Imagine this: You’ve just retired or sold a property, and you have ₹1 crore in hand. Now what? You want a steady income, but also want your money to keep growing.Here’s the smart way to make it happen — through a Systematic Withdrawal Plan (SWP) in mutual funds.
Learn What is MUTUAL FUND SWP !
🔍 What is SWP in Mutual Funds?
An SWP (Systematic Withdrawal Plan) allows you to withdraw a fixed amount monthly from your mutual fund investment, while the remaining amount continues to stay invested and grow. It’s like having your own monthly pension, but with growth potential and tax efficiency.
Real-Life Example: ₹1 Crore Investment, ₹50,000 Monthly Income
Let’s say you invest ₹1 crore in a well-performing mutual fund scheme that gives an average return of 10-12% per year.
You set up an SWP of ₹50,000/month. Here’s the magic:
📆 Duration: 20 years
💸 Total Withdrawal: ₹1.2 Cr (₹50,000 x 12 x 20)
📈 Estimated Value at End: ₹4.34 Crore*
Yes, after 20 years of withdrawing every month, you could still be sitting on ₹4.34 Cr, depending on market performance!
✅ Benefits of SWP in Mutual Funds
📅 Regular Monthly Income
📈 Capital Growth Potential
🛡️ More Tax-Efficient than FD Interest
💼 Ideal for Retirement Planning or Second Income
💸 Better Cash Flow Management for Big Goals
🎯 Who Should Consider SWP?
- Retirees looking for monthly income from mutual funds
- People with lump sum money from property sale or inheritance
- Parents planning for child’s education or household expenses
- Anyone looking for smart passive income options in India
💬 Final Thoughts
In life, we want stability and growth. With SWP in mutual funds, you don’t have to choose — you get both. Just like a tree that gives you fruit every month while still growing stronger, your ₹1 crore can support your lifestyle and become ₹4.34 crore in the future. So, why settle for just savings, when you can create a smart income plan with Master Fin Investments?